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>> maybe we're a little hasty in putting rim on death watch. the blackberry maker sold more blackberries than expected. listen to this, 7.4 million and lost less money than expected. shares of research in motion touched an all-time low this week soaring in pre-market action of roughly 15%. let's see how they're doing the opening bell, but they're up. now to the election, governor romney took some heat out and talking about the americans who will not vote for him. listen to this. >> who believe they are entitled to health care, food, housing, you name it, the entitlement and the government will vote for this president no matter what. stuart: recent figures showed the number of people not paying federal income tax has spiked under president obama. 47% is a legitimate figure.
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and the latest fox news poll shows voters are fed up. when asked if all americans should be required to pay some kind of federal income tax, 79%, yes, they should. and joining us with americans for tax reform, maddie go through it for me fast. how did the spike happen? i believe there was a spike in the number of people not paying any federal income tax at all. >> right, we've got romney talking about this and the media saying that this is, you know, him insulting, inelegant, a problem talking about it, what it is a referendum on obama policies and the state of the economy. what we've seen are incomes falling and people have less income due to paying taxes on and getting more he deduction and less tax income liability. ahead of that, too, though, we've seen a lot more complexity introduced into the tax code, we've got deductions, if you fill out your own 1040 how difficult it is if you're not taking the standard deduction,
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what your tax liability is. this is something coming down the pipe with a romney administration or more republicans in the house and senate we should be be considering when he we're talking about tax reform. stuart: okay, but it is accurate to say that in the obama years, a larger proportion of people are not paying any federal income tax and that the spike occurred in the obama years in part because of obama politics, is that accurate? >> well, the spike has occurred, really, over the past 20 years and i've seen incomes falling and heard the stat over and over again, how we've got personal wealth falling under obama policies and the other thing you need to remember, too, is that under the obama administration, it's not simply buying a different one for taxpayers, what it's been a huge expansion of the welfare state what. we see now, we've got 80 programs, 77 7 770 billion a year on the welfare programs that's what we're focusing on if we're talking about the size of government. stuart: i want to go back to the poll, 79% think that we should
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all pay, yes, we should be be paying something. now, it occurs to me that if push comes to shove and i tell somebody who is not currently paying federal income tax, you should, and you will pay federal income tax, you can't get elected, can you? >> well, listen, this is what the romney campaign needs to be more explicit about, what they should be doing after they elected paul ryan as the vice-president nominee, because he's given us a plan-- >> wait a second, you you think they should get out there and hey, you 47% i'm going to make you pay taxes. >> it's not a question i'm going to make you pay tax. i'm going to ask you to have some skin in the game. the paul ryan plan does exactly that. >> yes, i know, i know, but-- >> you've got to get to the central question here, mattie, which is, can you get elected telling 47% of the people, you're going to pay tax, you kent get elected, you can't do that. >> i could argue you can if you say it in a way that paul ryan
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and presidential nominee mitt romney should be doing talking about the plan that decreases the overall tax burden for americans in general. it's not just about the small minority or majority of the people who aren't paying some income tax, they're talking about the problems they have right now that doesn't have people concerned about their tax income liability because they don't have one. remember, too, this is just on the federal income tax side. we do have a lot of the people paying payroll taxes and social security taxes, and it's. an uphill struggle. it's a tippingpoint we've crossed the tippingpoint and it will be an uphill struggle to send that tax burden to everybody. >> i agree with you, but it's possible. stuart: you got the last word. thanks indeed. see you. could smith electric be the new solyndra? government-backed green energy company, smith electric that the president visited is now on the verge of failure. we'll talk to the chief executive officer. this is what mr. obama said when he visited the country's
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factory. >> one of those was to provide critical funding to promising innovative businesses like smith electric vehicles. and because we did, there's a thriving enterprise here instead of an empty, darkened warehouse. want to try to crack it? yeah, that's the way to do it!
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>> the markets are about to open and we're expecting a modest loss, not much movement this friday morning and some, not much. i've got two items of news for you in the news background, personal income up only .1% and the latest reporting period. and personal spending up .5%. we are spending a lot more than we are earning. add that to the numbers that came out earlier in the week that median income has fallen by about $4,000 in the obama years, and income is still not going up almost at all. and not counting for inflation. the market is now open and we're down ever so slightly and the first loss in seconds of trading should go down to a 30, 40 point loss and open the stocks up and we're moving. i want to tell you about research in motion. it's started trading and let's go straight to nicole and i want to know how big a gain rim, no longer a death watch. how big a gain.
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>> up-- unbelievable, 20% overnight trading hours and they came out with numbers that easily beat the street and their blackberry 10, you know, i don't know if this is the time to talk about all the things that they have lined up, but, hey, the numbers will tell you, up 13% right now. stuart: i think that they've got 2 million new subscribers and they sold 7 million units, actual blackberries, that's a big deal, that's it. >> yeah, that is it and two other things is it that they boosted the cash reserves by collecting cash owed to the company and working on inventory and they have a whole new marketing campaign for 2013, when they revamp the blackberry. stuart: that's it they're off death watch. and for today they're off. >> that's it, off death watch. stuart: nike, profits down, problems in china, go. >> and yeah, they had a slowdown in china and certainly something that we saw, while they did have a revenue gains, they were material costs, labor costs and we're seeing them under pressure and the ceo is talking about
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long-term growth and new products, but the big picture is it that, just a little bit of a disagreement there for nike, why it's down 3%. >> it's a big drop. as for the dow industrials, we're down 65 points now, 13-4 where we are on the dow this friday morning. let's get to the election, straight to the latest polls, from the wall street journal, in north carolina, a state they thought romney would lead. barack obama leads. let's deal with north carolina, i thought that romney would win that. >> well, look, this is the closest state in 2008 for obama of all the battle ground states, this is the one that romney is doing the best in, but not doing very well anywhere, in fact, only within the margin of error in north carolina and that poses a problem for him. new hampshire, again, i would have thought romney would be winning significantly in new hampshire, but he's not. down 51-44.
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>> big change in new hampshire, who is better able to handle the economy, romney used to be seen that way, and right direction, wrong direction, down 20 points, people thinking he was going the redwing direction, and previous polls now only 7. again, new hampshire better off economically than other places and romney neighbor's state isn't helping him in michigan or massachusetts. stuart: let's get to the big debate. you know what the debate is are your polls, are they valid, are they accurate? there's a question about if you look at internals. >> sure. stuart: are you polling more democrats than republicans? are you assuming that the voting patterns of 2008 will be carried through to the year 2012? >> yeah, it's a very important question, one that gets a lot of controversy. first of all, let me say these three states mirror the fox news national polls, a five point lead for obama, also, and polls are showing a similar story. pollsters don't set or weight by
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party i.d. it comes from our interis viewing process, we don't look the at '08 and say let's make it look like '08. people look at that, in fact, in each of the three states, there's more republicans than there were in '08 and so they're actually-- >> do you adjust for likely turnout? >> we do look at likely voters. >> that's where you imput value judgments in the polls, you do. >> it's not a judgment. it's a professional interpretation what makes a likely voter, how interested people are, whether they voted previously. whether they think there's an excellent or good chance to vote this time and what you see in a place like nevada, obama has a 7 point lead among registered voters, but that goes down to two points among likelies and goes republican in direction, so, you know. >> it's nevada, by the way. stuart: it's nevada, not nevada. nevada. >> i thought you said nebraska for a minute. stuart: certainly not. and. >> romney's ahead in nebraska. stuart: so do you make some calculation and impute value
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into-- >> the likely voter. stuart: how do you measure the difference in enthusiasm? i think it's largely, there's less enthusiasm for president obama than four years ago and more on the right to vote against president obama. how do you make a value judgment. >> pee-wwe see that in the numb for the younger voters, we're seeing it in the numbers, and they're still voting for obama-- >> that shows us up because we talk to people. and why should a pollster impute his own values, we talk to the voters and tell is and put it into the models. stuart: i pronounce this interview a tie. >> we fought to a draw. stuart: always a pleasure, hope you'll see us again before the election, we appreciate it, sir. >> absolutely. stuart: gas prices let me get to that right now because they're on the way down. look at this, everybody, overnight, we have a new national average, we're down to 3.78 for the price of regular
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gasoline and diesel is down 4.08. and prices are still way up there, but they are down. gas, a nickel lower this week. now, yesterday, i reported that smith electric, a company that president obama visited and highlighted as an example of a green energy company leading the recovery. it received 32 million dollars in federal grants, but after waning investor interest canceled the ipo which was canceled a week ago today. the company says it will produce 620 battery powered trucks this year, as of june, only 79. in the most recent sec filing, smith admits it's never been profitable and only has $800,000 in cash left. smith electric chief executive officer joins us from kansas city. brian, do you take issue with my report? tell me, where am i factually wrong? i've given a series of facts, tell me where i'm wrong. >> i'm not stating that any of
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your facts are incorrect. where the state of of the business, the momentum we have, our current financial position and the growth we're seeing is, it's quite honestly we're ratcheting extremely well. stuart: how can you be doing extremely well when you canceled your ipo, you've only got $800,000 cash left. you haven't anywhere near met the target for the production of electric trucks. how can you say you're doing well? >> well, again, i mean, you have to take everything in context, right? i mean, if you look at the experience we've had over the last month in terms of being out in the market talking to potential investors, trying to move into the public market, we got a tremendous amount of very positive feedback. stuart: you canceled the ipo, come on, brian. you canceled the ipo. essentially you're saying. >> yes, we did. stuart: you're saying we can't bring in the money we thought we were going to bring in, private investors-- >> we can't bring it in publicly at the value i wanted we do it privately and continue to have
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the shareholders and we're very confident and i know that we've got the financial strength and the access to capital to run the business privately which right now is the thing to do. stuart: where is the market for electric trucks, if were you going to make 620 and only made 79. have you made 79 by the way? you tell me where is the market for electric trucks? >> we've never had more trucks on order. this month, september is the biggest month in the history of our company in terms of production weeks' scaling our business, if you look at this year and what we did, we launched an entirely new product and the foundation much that product was really enabling us to deal with the supply chain and meet the demand that we see. the biggest backlog in the history of the company and largest supply, and starts to enable it and moving to the end of this year and next year, and truly start to move the volume where it needs to go. >> if that's your answer. if that's your argument. so why didn't the general public buy your stock?
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>> well, again, institutional investors said they loved the business, loved the space and-- >> wouldn't lend you the money. >> too early and the response we got, as a business, we made 50 million in revenue last year and we knew we were early, in terms of the size of business. they said go execute a couple more quarters and we'd love to own your stock. i said with my shareholder base it's easy enough for us to raise money privately, let's execute a few more quarters and continue to grow and really establish the install base of our next generation of product in this deal and let's go back to the market when it's appropriate. that's what we're going to do. >> am i right factually, to say you've never made a profit and your total debts are 132 million dollars, is that accurate? >> not at all. we-- at this point, i think we have 15 million in total debt and the total investment in the company from day one has been about 130 million dollars and 100 million was equity from individual shareholders. stuart: you're going to assure our viewers that you're not
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going out of business anytime soon. >> not going to happen. we're creating an industry and quite honestly, the loyalty from our customer base, now, just the sheer demand that we're seeing because the product works. we've had over 2 million miles on the fleet this year, the performance, the cost savings that are being realized by our commerce is why they're back ordering a second and third time. we see a niche opportunity for electrification in urban delivery and i think our customers will realize the product today is absolutely the product for them. stuart: you're down to $800,000 cash. no, that was in june. we've raised 15 million since then, raise another round in the balance of the year, so, no, i mean, that was a quarter to ending balance right before we brought in another round of capital. stuart: that was by the way-- >> very, very consistent. stuart: it was private equity that put the money in, right. >> absolutely. and that's how we've raised all of our funding to date. private equity. stuart: it wasn't bain capital was it? >> it was not.
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stuart: look, brian hansel ceo of smith electric, we appreciate your being here, thank you, sir. >> thank you. stuart: let's move on to something entirely different. queen elizabeth and her entire family live in a palace, got it live a lavish life style. and only costs a year, and we'll look at president obama's startling perks. and on varney@foxbusiness.com we read some regularly. this morning, starting with smaller a loss of blackberry, no more death watch for research in motion, the stock is close to $8 a share. profit down at 90, that stock is down. upbeat outlook for accenture and it is up. pretty good. 5% not barred. apple apologizes for its new apps, new maps app. says it will get better, but
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apple is at 6.80 this morning. amazon is planning on-line wine sales up 256 virtually unpaid. bank of america will pay 2 billion dollars to settle a shareholder lawsuit. it's down. and drug store chain of walgreen, the stock is down. 36 on walgreen's and the dow is down 60. signs of life in the housing market. next, our real estate agent will show us three different homes, three different price ranges, three different areas of the country and they're all pointing up. how about that. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process --
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>> signs of life in the housing
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market. joining us is tony with keen investments realty. three homes to show us. >> yes. stuart: former prices, current prices, price movement. let's start with colorado. a picture, i think. this house built in the year 2000, listed in '07 for 1.75 million dollars. sank to 975. now is at 1.1 million. is that accurate? >> it's accurate and we're getting a the lot of activity on that house, it's a great rental, if only for the summer, right? and you get fishing rights with it. it's need, but colorado is an interesting state. they have jobs. the manpower employment survey said that 17% of companies in denver, now, this house isn't in denver obviously, but plan to hire and 73% continue to maintain their stats. >> the local jobs market markets strength in the housing market. went to 975 bottom. bounced to 1.1. a bounce in real estate in colorado. item two, atlanta. a house a year ago listed for
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298, october much 11. 298 now at 300,000, not much of a bounce, but it's a bounce. >> a small one. stuart: that means the atlanta market is not real hot at all. >> no, case-shiller says it's gone down 10% in the last year, a june and july come up 2.5%, they're starting to creep up. more interesting factor in atlanta. builders are picking up land to build and not waiting for the inventory is gone like arizona and other states, they are he' actually piiking it up and trying to get ahead of the curve when the inventory is gone they're ready to go. >> number three, arizona and. >> $82,000 this house, that was one year ago, but, now listing for was it 112 is that? >> yes, 26%. >> that's a bounce. >> and still the best place to invest. this house will rent for $1100 a month and give you a 9-- that's an excellent investment. >> sure is. and even though you've had a 20
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odd% bounce from the low of a year ago, it's still a good investment area. >> you bet, so it's investment strategy. this is buy and hold, create your cash flow, sell in five to ten years. stuart: there's no such thing as the national market. colorado, arizona. and quickly, it's interesting, new york had-- this is off case-shiller, right? new york has the worst decline between june and july. stuart: this year. >> this year. stuart: the worst decline. >> interesting. dallas and washington d.c. saw no change at all. this moves there's no national market. and cleveland and detroit saw annual rates decelerate july versus june, but up from a year ago. okay. north dakota, they're up 17 points, 5%. stuart: and that's oil. >> oil, exactly. stuart: and the moral of the story is. >> really quick, iowa, oklahoma, nebraska, kentucky and alaska are near their peak where they were back. stuart: really?
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>> yes. stuart: that's a story. come back and tell us that one. and with seem investment the realty. time for your gold report. almost 950 eastern. what have we got. 1,775 per ounce, down five bucks, but still up there. we also got the chicago pmi number earlier. the number down this month compared to last month and that's the first contraction in that number for three years and the dow jones industrial average is down 96 points. that's why. british taxpayers spent only 67 million on the royal family. wait until you hear how much our bill for housing be feeding and protecting president is. that's a new at 10 number we've got for you. rare occurrence at last night's football game. the referees were cheered. it was the fan's way of saying, welcome back, you guys in zebra suits. ♪
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>> a way to check the big board because this is a big decline. stocks tumbling after a report on the manufacturing sector,
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specifically, it's called the chicago pmi, the chicago purchasing managers index. a negative reading, moved down to 49 points in september. first drop below 50 in '09. anything below 50 signals a contraction for the economy. down we go. 100 points lower. the nfl refs are back. take a look at this video, the real refs got a standing ovation at last night's browns-ravens game, but it's the refs that should be cheering. they ended up on the winning end of the deal. and mark lanier, ace attorney, is here. he did not represent the refs, did you? >> i did not represent the refs, they got an outstanding deal and my official prediction, within two weeks everybody will be booing the refs again. >> and mark, that call, that will be it. stuart: you are connected to the football world and do you wish to say anything about football? >> i am a jets fan, so, go jets. and sanchez and tim tebow,
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that's about it. >> and i've got, one second, a reading on the consumer confidence, university of michigan, this is a respected consumer confidence index and it's lower, a reading of 78 came in, and that's lower than expected. and that implies consumers are less confident no matter what the washington post says this morning, consumers are less confident and so down goes the market. we're now down 108 points. and here is a question. we've been asking, a lot. is mitt romney just too nice? does he need to go on the attack more? is he capable of going on the attack? can this man go for the jugular? someone who knows him personal, more, next, and he'll answer that question, can romney drop the nights guy act? ♪ no more mr. nice guy ♪ [ owner ] i need to expand to meet the needs of my growing business. but how am i going to fund it? and i have to find a way to manage my cash flow better. [ female announcer ] our wells fargo bankers are here to listen,
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stuart: the mainstream media pointed to consumer confidence numbers as a bright spot for the economy. all but ignoring the gdp and we got a new read on consumer confidence for university of michigan moments ago lower than expected. also new at 10:00 wait until you hear how much this administration spends on perks according to a new book. largest warehouse staff in
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history getting largest and highest salaries ever and air force one that runs on a schedule of a commercial jetliner. those are just some of the quotes from the author who says obama spent $1.4 billion a year on such perks. i want to show you the big board. stocks down after the chicago manufacturing report shows the first attraction in three years. anything below 50 the reading was 49. below 50 we are contractor down 101 for the dow. we have a special, special panel. best-selling author and sitting right next to her trial lawyer that you hate to love, mark lanier. nicole petallides always on the floor of the stock exchange. the mainstream media continue to spin the economy in president obama's favor. here is today's quote from the new york times.
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people are growing more confident of the economy and the president but on "varney and company" we don't avoid reality. in the second quarter economic growth revised down to 1.3%. unemployment above 8%. the liberal media is in the tank for president obama but they will be hard pressed to spin this new consumer confidence number which is down. >> they can create the protection of the one that this economy is improving and the political benefits reach out to president obama in november but the american people know the truth because they're living this economy every day. twenty million americans either out of work or underemployed. people leaving the work force. no economic growth. when you compare this so-called recovery to the reagan recovery and look at those gdp numbers in the reagan recovery you had upwards of 9% economic growth. that is unworthy of the united states.
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stuart: we will get to why the polls don't reflect your position in a moment. mark lanier. would you want to sue the establishment media for their misleading the public? >> the media is allowed to say what they want and allowed to be selective and allowed to be 1-sided as opposed to fair and balanced. stuart: when you agree that they are. the establishment media is in the tank for obama? >> i would modify it slightly because i consider fox -- [talking over each other] >> by definition fox is the media that people watch. you got the ratings. i am going to nicole petallides. two smart phone stocks. research in motion. give me the number because it is up. >> we are seeing research in motion up 13%. we were looking at this stock earlier in the weekend throughout the week we heard they were adding subscribers.
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blackberry can getting great reviews. now we are hearing about the cash being built up in their quarterly numbers and the outlook for a huge marketing campaign for 2013 so here you go. great day. stuart: give me apple which is going the other way. is apple down? >> they were excelling and getting near the 50 day moving average and started to gain yesterday but giving a little bit back at 677.25. the highest, 77 and change. stuart: something with the math apps. they went off with the i phone 5 not in the best position. >> that is right. the mac has been the no. one on their side with the i phone 5 and some talk about the upgrade. that is messing up their iphone. a couple of things they had to
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deal with the. stuart: if max is the floor in your side i don't think it is of. you agree with me? >> yes. stuart: the dow is down 88 points. let's go to the other top ten stories. taxpayers shelling out nearly $1 billion last year alone for so-called presidential perks according to the new book by robert keith gray. includes the cost of the president's staff. eric -- air force one and entertainment as well. i would like to point out one quick thing here. british taxpayers spent less than $59 million on the royal family. i am not comparing the whale family with the presidential entourage. lower your eyebrows. what do you make of $1.5 million on the expenses of the white house staff?
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>> every president needs a staff and security so we don't begrudge that -- [talking over each other] >> the president needs to move around the world and have security so we don't begrudge that. the problem is the staff is the largest in history and expenses the largest in history and a time of great economic distress for so many americans. this shows a tin ear on behalf of president obama. he should be scaling down his staff. scaled down the travel. scale down the entertainment because the signal to the american people is maria antoinette. let them eat cake at 5 flyer around and entertain stevie wonder when you are looking for a job in my economy. stuart: what do you have to say? >> not much after that. it is a question of comparison. if you are comparing him to president bush and staff is up and the salaries are up you got to ask if that is smart politics. i would have expected more from
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obama. i would have thought he purposely put it down even if it is down by one but he isn't and it is not well thought out. stuart: do you think the british get a bargain? [talking over each other] >> of bogus figure. tax breaks the queen and the royal family get is monstrous compared to anything -- what president doesn't get a break? [talking over each other] >> she doesn't pay the property tax on all of those estates. [talking over each other] stuart: she is sustained. [talking over each other] stuart: a famous saying nice guys finish last. is that going to cost mitt romney? is he too nice to go on the attack? joining us is an intended consequences. ed worked for years at the side of mitt romney when they worked at bain capital. you were with mitt romney for
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ten years. >> 93 to 2,000. stuart: mitt romney the man. the personality. i am saying the man is too nice. a lot of people saying he is too nice and cannot go on the attack and stick it to his opponent. >> in private he was mighty tough but he is the very fact based analytical guy who cares about your opinion but once you to back up your opinion. difficult to communicate that through the media where you speak in sound bites and a lot of emotion and intuition goes behind the message. that is not a world he lived in. he lived in a world of fact and analysis. stuart: seen him lose his temper? stuart: yes. stuart: when bang his fist on the table? >> he would talk to your face and explain his point of view and why he thought you weren't thinking of something the right way. stuart: forgive me for asking a personal question. he loses his temper. would you? >> he lost his temper with me
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over politics at times. stuart: i use some kind of liberal? >> we definitely see things differently and i am not a liberal. stuart: get right in your face? >> he is not like that but he is a passionate guy. what i see on some tv sometimes is he tries to rein that in. if you are in private one on one he is not afraid to let that come forward and say i feel strongly about this. stuart: does he have the kind of personality where he could reach out and attack, go after the president? not harshly but vigorously? >> i have seen him do it to me. his nature is to focus on the fact, the analysis, the truth. it doesn't play well for the kind of thing you are describing. stuart: reading between the lines. he is a nice guy. too nice. >> you are saying that.
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i am not saying that. i have seen him make tough decisions and seen people around a table disagree with him vehemently about some things where he thought they were wrong. stuart: the other side of the coin. can he inspire? in meeting of people at bain capital to get out and get the crowd going and inspire them? >> i have never seen him -- in my life with him he wasn't really responsible for inspiring large crowds but sitting around the table of ten partners trying to make tough decisions i think we all had extremely high opinions, tremendous level trust. [talking over each other] sandra: mitt romney strikes me as old school, very reserved and very kind and all the stories we heard at the convention of the times he spent with people losing their sons or daughters and shutdown bain capital because one of the employees daughters went missing and he led the search team he is very reticent to talk about that because he is an old school gentleman but in the republican
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primaries this time and last time he took his opponents out at the meetings and they will tell you whether it is rudy guiliani newt gingrich they will tell stories how tough he is that he can be a political killer. stuart: the assessment was he comes across an old school gentleman. >> both are true. he feels a tremendous moral obligation and a lot of humblest those with that. he can be tough in the debates. stuart: going to vote for him? >> absolutely. stuart: thanks for joining us. we appreciate it. [talking over each other] stuart: mcdonald's now is down big. why is that? nicole: they're talking about same-store sales for early september and this is looking like it is going to be their worst month on record for the year 2012. couple things they are facing. intense competition. one thing doing well is there low-cost menus are helping bring
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the traffic back so mcdonald's, analysts are saying the outlook -- they got to cut down same-store sales numbers going forward and that is why capital is cutting them to neutral. stuart: is that a flower on your shirt? french fries? >> the mcdonald's story. it is the baby -- a small fry at mcdonald's is 209 calories. i thought you would enjoy a little extra something. stuart: a free commercial companies. [talking over each other] stuart: that is legit. anything to do with that is legit. thank you very much. despite high unemployment and slowing economic growth president obama is ahead of mitt romney in most national polls. republicans say that is because the polls are skewing to the left. the liberal media says the gop is just whining about it. here's the washington post. conservative activists circles are abuzz with a new conspiracy
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theory. polls showing president obama with a growing lead of skewed by the liberal mainstream media. that is what we republican conservatives are supposed to be saying. even the comedy shows are chiming in at my expense. here is the cold report. >> i don't believe them. you can go through all the scientific gobbledygook you like. i don't believe them. they are basing this on scientific gobbledygook which is also the name of stuart varney's character in harry potter. poppycock gobbledygook. very hard to say without swallowing your own fund. stuart: it was funny. case close. your reaction? >> you should be a guest. you should take it to one on one
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and lay it out. holes are statistics mark twain's famous for saying they're a tweet times as wise and the third one was statistics. stuart: i said flat out i don't believe these polls. >> i can hire expert witnesses who will say anything i pay them to say. i don't use that kind of experts. you putting your money and they sing the song and you can find it in politics and everywhere. people who will say whatever they want to save for their agenda. stuart: i think there is an internal skew in these polls because the pollsters put their own value judgments into the internal adjustments of their results. sandra: trying to create a perception of movement for president obama. there oversampling democrats and overestimating democrat turnout basing it on the 2008 model and a lot of these pollsters are projecting greater democratic lead last year as last time and nobody expects that but also not
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looking at voter registration which a lot of these key states the republicans have a big lead and early voting in key states like ohio republicans are ahead. stuart: do we know that? republicans are ahead? >> in terms of absentee ballot requests and voter registration republicans have an advantage. it may not last that this moment that is true. stuart: 39 days until the election. there are industries that our next guest says are going to thrive depending on who wins. very different groups. we will tell you about it next. [ engine revving ]
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stuart: just look at the stock market. the dow is down because the chicago measure of manufacturing showed a number below 50. that means contracting economy. first time we have seen that in three years. that is why the dow is down 96 points. negative reading on consumer confidence didn't held. reading of 78 for the university of michigan. confidence that a reasonably high level but not as high as expected. bank of america says it will pay $2 billion to sell a class-action lawsuit related to its acquisition of merrill lynch. shares of bank of america are around $8 a share. we have 1889. in 90 seconds which businesses
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will thrive if president obama wins? which will drive president romney? got it all in 90 seconds.
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stuart: atwater california trying not to declare bankruptcy. a city of 28,000. ninety-five million in the red since late june. stockton and san bernardino and mammoth lakes have filed for bankruptcy protection.
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one of many reasons i call it the formerly golden state. we are just over five weeks until the election and next guest says there are certain industries that will fare better in a romney versus obama reelection. global marketing strategist yuri man is in miami to break it down. i want to go through this fast. if romney wins what is the number one industry group that wins? >> the number one industry is energy in the sense that oil, natural gas and coal companies will do better. romney is going to take an aggressive survey of everything available to the united states and expedite permits so the united states can become more independent. that is the first -- defense spending. stuart: i have health care. you say health care will do well in the event of a romney win. explain that. >> specific companies and the
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health-care field especially medical device companies that create the most high end products which are expensive but raise the quality of our health care system those types of companies will benefit. during the affordable care act when it was drafted we added 2.3% tax on those companies so that tax might be repealed or reform. more ingenuity of type companies. stuart: that was a tax -- [talking over each other] stuart: 2.3%. if it goes away than that particular group biotech does well. >> under the current system is difficult to pass these types of costs to the end consumer. high end medical equipment. stuart: turn this around. suppose president obama gets a second term. industry winner. which is it? >> low-cost retailers. and dray romney presidency we are most likely to have a tax
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reform which will include value-added tax and the low-cost retailers are extremely tax sensitive. it is no wonder florence jackson who is executive vice president of wal-mart is a huge obama supporter. he doesn't want a tax on consumption which is the wrong thing for our country. stuart: isn't that a bit of a stretch? a romney administration would have a value-added tax? isn't that a stretch? where did that come from? >> if you look at the way we tax our country today we have a very progressive tax. we have to raise taxes under romney or obama. [talking over each other] stuart: i take issue with that. tax reform doesn't mean tax increase. >> i don't see how we will pay for the deficit without --
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stuart: un obama supporter? >> i am not an obama supporter but i still can't believe a situation where we will get out of this without doing something. we are not raising revenue and -- stuart: you raise revenue by lowering tax rates and getting rid of some loopholes and deductions. that is how you raise revenue. >> if we remove loopholes for taxes it is the same as raising taxes. right? stuart: somebody was in my ear. say that again. >> if you reduce the loopholes on people taking deductions you are essentials raising taxes. stuart: when you lower tax rate you create incentive to work harder or take a second job and therefore you boost the economy and bring more money to the central government without raising tax rates for taxes themselves. i got to go. glad you stuck around. tax reform. that was very useful. come back when we have more
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time. dow industrials are down 101 points. next the women's vote. especially unmarried women leans heavily towards president obama. why is that? have they not been paying attention the past four years? that is what a top obama campaign adviser says. >> what you find most often is they are not concerned about what happened over the last four years. their want to know whht will happen in the next four years. with the fidelity stock screener, you can try strategies from independent experts and see wh criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments.
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>> that was the quarter 2 ending balance before we brought another round of capital. [talking over each other] stuart: private equity put the money in. >> absolutely. that is how we raise our f -- stuart: it wasn't being capital? that was brian hansel defending his green truck company. smith electric. tune in 9:20 weekdays. check the markets because we are down some more. up 116 points for the dow. 133 is where we are now. of the price of gold. we are down $7 at $17.73. where are we now?
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$91 a barrel. not much change. and noticeable drop in gas prices over the week. it is down to $3.78 and diesel at 408. to the election. the female vote. here are the numbers from gallup. president obama leads mitt romney 52-42. among married women romney leaves by the president 48-45. according to gallup obama leads romney 60 to series 3 among unmarried women. kelly change warrants from weekly standard is in washington and i will go right at that. 60-33 among unmarried women. i explained that by saying unmarried women want free birth control as a right and you say what? >> that is what the obama campaign thinks that i am not sure that is true. stuart: 6033.
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you explain it. >> this is why i say there is no such thing as an objective media. we keep hearing stories about the gender gap between ronny and obama but no one is talking the marriage gap. married women gallup finds -- stuart: you got to explain this. 60-33. either the poll is skewed or there is some policy which really does appeal to unmarried women or as my colleague the grisly lawyer says maybe there's an ad that has gone out to unmarried women and that is doing that. what is your explanation? >> the obama campaign is going after the base and worried about turn out. young people, women. that is to they consider part of the base. look at a slightly different way. women in general. we have 52-42. in 2008 the gap was much larger.
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57% went for obama and 43 for mccain's of the gender gap has narrowed and i submit you may not agree but i submit part of it is the contraceptive argument. we keep hearing republicans are the party that see women as reproductive vessels but it seems the democrats who assume women are going -- going to vote based on internal organs. stuart: may be a successful outreach. we will give you folks free contraception. everybody gets it and somebody else will pay. you won't day. maybe -- >> it is attractive to some women a lot of other women can see through it. the cynical ploy to get their votes and insulted by the idea that if we don't have free government birth control women can't figure out how to get it for themselves. young unmarried women are going for obama but the gender gap has
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narrowed since 2008 and the women who may be older and wiser they see it as a cynical ploy to get their votes by buying them. stuart: anything to say? mark lanier? >> are these strictly off of being democrats? they will vote for democrats? are they part of the 47% and these women don't pay taxes? wears a coming from. >> that is part of it. if you are unmarried and you are younger and you see younger people skew more democratic. all the polling that has been done looking at registered voters tense tuesday democratic in the first place. stuart: very interesting question. i want to discuss the gender gap more before the erection. >> would love to talk about
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more. [talking over each other] stuart: thank you very much. in our last hour we heard from smith electric. the latest government backed money-losing green energy company. next i will ask bob dean if this is the new solyndra. the u.n. with solyndra? did you win? >> it has been a tough one. [talking over each other] copd makes it hard to breathe,
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stuart: joining the company from chicago is scotty. we got the chicago p.m. i report. a contraction. is this more evidence that we may be going towards recession? >> how much more evidence do we need? yesterday's gdp number was 1.25. [talking over each other] stuart: i didn't know that. i thought was reported as 1.3. you are still telling me they rounded up? >> hetrick q e 1 and qe2 and q e. 3 that is all we can muster? jobs numbers have not changed at all. there's a real chance we could slide into recession and a very real chance we have q e 4 before the end of the year. stuart: q e 4 before the end of the year? >> to be a possibility. we talked earlier -- stuart: you got to be buying
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gold. i know you are wearing a cowboy jacket but you got to be buying gold. >> we got to get your swagger on. silver, art, energy and real-estate are the things that will go up when we keep inflating like we are right now. stuart: i wish we had more time but we don't. i think you made your point. i did not know we rounded up. thank you. smith electric makes battery powered trucks in kansas city. it received $32 million in federal grants but after investors lost interest it canceled its ipo last week. is it the next solyndra? bob dean joins us from washington d.c.. let me give you a couple items on smith electric. we give them $32 million of taxpayer money. they canceled the ipo.
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retail investors wouldn't give them any more money. it is supposed to be 620 trucks and only 79. my point is this is another failing green energy company with taxpayer money at risk. a larger point. we the taxpayers should not be picking winners off of the energy markets. >> americans are spending one billion dollars on gasoline everyday. if we could cut 20% we put $300 million a day into consumers' pockets. this company is on its way for doing that. coca-cola and at&t and ups saving $0.27 on the dollar. stuart: it is on the ropes. that is all they have left. they are deeply in debt. they sold 79 trucks. not 620.
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this is a failing company and the market knows that. private investors know that. that is why they would not give them more money. the government shouldn't be putting my money into companies like this. >> the money is going to the customers who are willing to report performance data to the department of energy. that is how we know these trucks are 27% more efficient from diesel competitors. corporations like that and consumers like the idea of getting $300 million a day back in their pocket. think what that will do to the economy. oil companies don't like it but consumers do. stuart: you are shoving this down our throats and we don't want it. i want the market to work. if you let the market work we really have a better system for everybody. instead you are shoving these subsidies into companies which really can't use those subsidies, can survive in the real world and losing my money. that is my problem. not with electric cars and trucks but with my money being
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used on losers. don't like it. >> here is how the market is working. sales of these cars are up 64% this year for electrics and hybrids. we will sell 470,000 new electrics and hybrids alone. that is a 64% because americans like saving $1,200 a year. they like cleaner air and reducing -- [talking over each other] >> 400,000 we will sell this year. 67 of them are with this company we invested all the money in. that tells me private enterprise is working pretty good selling their own vehicles. >> $32 million. most of that goes to consumers that are willing to report the department of energy. savings -- we know what we need to do better. that is progress and how we forward.
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[talking over each other] stuart: capitalism really works if you give it a shot. subsidies don't. bob dean, appreciate you being with us. thanks for joining us. is there any morality in the legal profession? mark lanier has been with us all our. we will ask him that question next but first let us remind you this man mark lanier has sued just about everybody. i have seven early mover is for you and after each one i will pause and ask mark if he ever sued the company i am talking about. >> i have sued them and represented them. i have sued gm. stuart: don't tell you ever sued apple. conflict of interest. >> i have sued them. stuart: 1:15. >> i won of $56 million verdict year before last. everybody has sued walmart for one thing or another. stuart: seven early mover is you have sued five of them. [talking over each other]
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stuart: check the big board. dow jones industrial average is down 90 points following a negative report on manufacturing. chicago p.m. i a negative reading below 50 which means the economy is contracting. first time we have seen that since 2009. we also got a negative reading
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on consumer confidence from university of michigan. the reading was 78. confidence relatively high but not as high as some were hoping. apple's chief apologizing for the new map application saying he is, quote, extremely sorry and the new software does not live up to the company's standards. apple is down. $8. after the break, is practicing law a moral issue or is it just about making money? mark lanier will defend his business model. i should say profession. next. things have been a little strange. (sfx: sound of piano smashing) roadrunner: meep meep. meep meep? (sfx: loud thud sound) what a strange place. geico®. fifteen minutes could save you fifteen percent or more on car insurance.
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stuart: first off is mcdonald's. nicole: it was custom neutral. on growth concerns. looking at the noted and the global picture and we will look at the next company but just right off the bat when you look at the analysts' reports talking about u.s. sales and those numbers should probably come down. the first couple weeks in september have been the worst months of 2012. stuart: mcdonald of the drop in that stock is costing the dow's 17 points. yum brands. what restaurants are under yum brands? >> kentucky fried chicken, taco bell, pizza hut. i would be happy to go to any of those. that is really both of these stories are a global picture.
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talk about concerns about china. china growth coming in and we have a strong dollar affecting companies multinational. stuart: we will take it. thank you very much. i have said it before and stuart: and i will say it again. there is no morality in the practice of law. it is the business. go for the money. take for example massachusetts senate candidate liz of the war in. in 95 as a harvard law professor she defended a steel company trying to block union members from getting benefits. hundreds of millions of dollars of benefits. fast-forward to today she bills herself as the working-class candidate for the senate in massachusetts. mark, defense your profession. >> ag cannot defend candidate warren. i don't know her circumstances but i will tell you this. you will find in the practice of law people who treat it like a profession and people who treat it like a business. i rejected a case the other day suing a member of dental clinics
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to committed medicaid fraud on needless services on children. do we throw away all dental clinics because that one was not using it as a profession but was treating it as a business? stuart: we wouldn't sue him. you would not. even though they were taking the taxpayer for $85 million. >> they pay that fine to the federal government entering bankruptcy court. all i would be doing was going after insurance dollars in that case. stuart: when you have the good moral position to say i won't go after them. >> wasn't out of morality. they need to be gone after. i don't have time to go after them. i will tell you this. most law firms i know of spend 15% of their time and energy and money doing pro bono work for people who pay nothing at all. stuart: i am not knocking that. what about the contingency fee? 30% or more contingency fee plus thousand dollars an hour and expenses.
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would you go after companies with deep pockets? that is not just this. that is going after money and nothing else. >> you don't know unless there's good cause of action but the declaration of independence says one reason we've been declaring our independence was king george was depriving us of the right to trial by jury. it is a sacred right built into the american's seventh amendment. stuart: help me out. >> i almost went to law school. president nixon talked me out of it. he said i am a lawyer. the country has enough lawyers. we don't need another one especially one that doesn't have a passion for the law. you have a passion for the law. stuart: is that it? that is the hard time we were going to give him? >> thank you very much, monica. stuart: next my take on why young people can't get a decent job. i have advice for them. [ male announcer ] let's say you need to take care of legal matters.
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wouldn't it be nice if there was an easier, less-expensive option than using a traditional lawyer? well, legalzoom came up with a better way. we took the best of the old and combined it with modern technology. together you get quality services on your terms, with total customer support. legalzoom documents have been accepted in all 50 states, and they're backed by a 100% satisfaction guarantee. so go to legalzoom.com today and see for yourself. it's law that just makes sense. to meet the needs of my growing business. but how am i going to fund it? and i have to find a way to manage my cash flow better.
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lou: on lou dobbs tonight the economy and unemployment rampant and the dollar depressed. can our presidential candidates fix this economy? we have the answers tonight at 7:00 eastern. stuart: the wall street journal, my attention yesterday.
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the writer has operated an employment agency for 15 years and has plenty of entry-level job openings that she cannot fill. why? so many youngsters after a decade of public education don't have what it takes. here is my take on basic job skills which are sadly lacking. show up for the interview on time. put on a clear and -- clean pair of hands and don't show your underwear. that goes for young women too. baseball caps come off in the wars. brooke your prospect of the employer in the eye. smile modestly and shake hands. you do not hug. use good grammar. demonstrate that you can hold a conversation. if you get the job, keep it. show up every day to work on time stone cold sober. no liquor on your breath and no rabbi from we did. get along with your co-workers. don't in gauging gossip. that is a short sign of a small mind. did not call in sick unless you
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are really sick. look for extra responsibility. if you public-school didn't teach you to do simple math learned. if you can't read easily practice. get your head straight. you want to move up the food chain. those of ambition. one last one. if you have got a tattoo don't show it. if it is on your face you are screwed.
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>> friday, the highlight reel. roll it, please. >> oil companies don't like it, but consumers do. >> you are shoving this down our throats, and we don't want it. if the market work we would have a much better system for everybody. >> that was the ending balance right before we brought in another round of capital. very, very consistent. >> prime equity. >> absolutely.
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>> wasn't being capital, was it? enough about green energy and failed policies, i want to go back to my take and advice for jobseekers. no piercings in unusual places. they have a piercing in an unusual place and thinking about that more than any qualification. other than that, you're brilliant on the right book. >> no chewing gum, no ipod. the fact you even have to say this to young people. when we were all coming about who would never even think twice, you just went and did it, now a sad reality we have to remind young people. >> does sound a little bit like a grumpy old man? >> not at all. time is up, thank goodness.
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please, take it off of my hands. connell: we will do our best. breaking news, bank of america paying $2.43 billion settling a class-action lawsuit brought by investors over the acquisition of merrill lynch. saying this is not an admission of guilt, the settlement was reached to eliminate the uncertainties and the expense of further litigation. dagen: you just heard him mutter something. highlighting the fact the pain is felt from the collapse of 2008. not trying to unload first to report about the efforts, what do you know right now? >> the bottom line

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FOX Business September 28, 2012 9:20am-11:00am EDT

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